At Davos, Debate on Whether Banks Have Learned Their Lessons (NYTimes) Paul Singer, the founder of the hedge fund Elliott Management, said on Wednesday that he remained skeptical that the financial markets were safer despite the changes enacted in the banking industry and by regulators after the financial crisis. As part of a debate on the postcrisis financial system at the World Economic Forum, Mr. Singer said that banks remained highly leveraged and that the buying of debt by central banks had distorted the prices of stocks and bonds. He also said he disagreed with claims that banks “unquestionably understand” the potential risks on their balance sheets.
Einhorn Discloses Stakes in BP and Anadarko (NYTimes) The hedge fund manager David Einhorn has made a pair of bets on the oil sector. Mr. Einhorn’s firm, Greenlight Capital, said in a quarterly letter to investors on Tuesday that it had taken stakes in BP plc (ADR) (NYSE:BP) of Britain and Anadarko Petroleum Corporation (NYSE:APC), which is based in Houston. Greenlight Capital did not disclose the value of the stakes but said they were “medium-sized.” In afternoon trading in New York, BP’s American depositary shares rose more than 1 percent, to about $49, while shares of Anadarko Petroleum were up more than 2 percent, at about $83.
Altin Unveils Hedge Fund Roster (Finalternatives) Listed fund of hedge funds Altin is taking its transparency pledge very seriously. The Swiss firm has disclosed its entire portfolio, identifying every fund it invests with and how much of its money each manages. The US$230 million FoF invests in 46 funds, having added 10 to the portfolio in the fourth quarter of last year. With leverage, it has 126.72% exposure. The Altin roster is littered with prominent names, among them Cerberus Capital Management, Claren Road Asset Management, Coatue Management, Fortress Investment Group, Hayman Capital Partners, Jana Partners, Marathon Asset Management, Millennium Management, Odey Asset Management, Tudor Investment Corp., Two Sigma Investments, Verrazzano Capital and York Capital Management.
V2 Capital Announces $200 Million Investment in Hedge Fund (HedgeCo) V2 Capital, an SEC-registered investment advisor, received a $200 million dollar allocation from a Fortune 500 insurance company to the V2 Hedged Equity Strategy, the firm announced today. The investment was allocated during the fourth quarter of 2013 and is now fully deployed in the Strategy. Victor Viner, Founder, President and Chief Investment Officer of V2 Capital said, “The latest allocation validates our belief that the V2 Hedged Equity Strategy should be a core equity holding for institutional investors. The Strategy is designed to produce attractive risk-adjusted returns throughout a market cycle.
Why Bill Fleckenstein Is (Almost) Ready to Short Stocks (BusinessWeek) Take this as a caution if you’re an investor who thinks the Nasdaq Composite Index, up 34 percent in the 12 months ended on Jan. 21, has room to run. Hedge-fund manager Bill Fleckenstein is raising money to short tech shares. Fleckenstein, 60, based in Seattle, has called a few crashes, Bloomberg Markets reports in its February 2014 issue. He shorted Japanese stocks starting in 1988, meaning he sold borrowed shares to buy them back later at a lower price. The Nikkei 225 Stock Average plunged 39 percent in 1990. He also made money for clients as stocks slid in 2008. And he’s made mistakes, shorting technology stocks in 1999, which was too soon. The Nasdaq climbed 86 percent that year and didn’t peak until March 2000. Fleckenstein declines to say how much his investors lost.
Pine Grove Launches Registered Vehicle To Provide Institutional Quality Offering For Investors (SacBee) Pine Grove Asset Management LLC (PGAM) today announced the launch of the Pine Grove Alternative Institutional Fund (Alt Instl Fund), its first registered closed-end fund under the Investment Company Act of 1940. The Alt Instl Fund adds to the well-established fund-of-funds offerings at PGAM, which was founded in 1994 and is one of the oldest, independent firms in the hedge fund industry. The Alt Instl Fund will provide accredited investors with streamlined access to relative value and event driven hedge fund strategies with a core focus on credit investing.